Is it time Warren Buffett uses this money?

Money is king for Warren Buffett. Could finally be the time to use it?

Berkshire Hathaway Inc. of Buffett announced its results for the third quarter on Saturday morning. But let's be honest, there are rarely surprises – at least nothing that can radically change the investment record around Berkshire – and that was still true this time. It has long been one of the least volatile stocks in the S & P 500 index (although prices fell 8% from last month's record high) and, as the US economy is doing well. Well, Berkshire should too.

Like its counterparts in various sectors, Berkshire's operations had a good quarter: BNSF Railway benefited from improved pricing power and the lack of trucks to transport goods. Insurance activities rebounded from last year's technical losses, caused by a series of hurricanes. And, because Berkshire holds mainly US-centric companies, it is somewhat isolated from trade tensions. Precision Castparts, the aerospace parts manufacturer acquired in 2016, could be an exception because of its needs in steel and aluminum. Nevertheless, the manufacturing sector has seen an increase in revenues and profits. All of this helped Berkshire's operating profit reach $ 6.88 billion from $ 3.44 billion a year ago.

That said, the most intriguing figure for Buffett's shareholders and supporters is Berkshire money. Its war chest amounts to $ 104 billion – a slight dip from $ 111 billion in the second quarter – thanks to the wealth of valuations and the competitiveness of the mergers and acquisitions market that has kept Buffett from staying apart. In fact, Berkshire's liquidity has risen slightly faster than the value of its stock market investments, a trend that fascinates me because we are talking about one of the most successful investors in the world. Even though he can not cope with all the money that Berkshire generates:

Buffett, the President and CEO, triggered the share buyback, worth only $ 928 million. In July, the Board eased its buy-back rules, which previously could not exceed a 20% premium on the book value of Berkshire shares, a multiple of 1.2x book value. Now, buybacks can be made whenever Buffett and Vice President Charlie Munger "think the redemption price is lower than Berkshire's intrinsic value, determined conservatively." For what it's worth, the current ratio is around 1.4, according to data compiled by Bloomberg.

This report on results, however, comes at an interesting time. In just a few days, the United States will vote in the mid-term elections in the most vivid political climate of recent years and in a country increasingly divided over its future. And despite the general signs of a still healthy economy, the stock market was unbalanced over the past month, spurred by concerns ranging from the growth prospects of technology giants to the highest profits of industrial companies to the trade war ongoing with China. This is where Buffett, the American cheerleader, would say that the long-term prospects of the nation are still intact and that today's children will be even better off than their parents.

To contact the author of this story: Tara Lachapelle at [email protected]

To contact the editor responsible for this story: Beth Williams at [email protected]

This column does not necessarily reflect the opinion of the editorial board or Bloomberg LP and its owners.